8000 Households Supplied in 'Geumsaragi' Yongsan... Ongoing Controversy Over Appropriateness

A 'Mini New Town' in the Heart of Seoul... Supply Relief
Concerns Raised Over Decreased Competitiveness Due to Increased Residential Proportion in International Business District

The site of the Yongsan Station maintenance depot in central Seoul, where a plan to supply 8,000 apartment units is being promoted. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The government has sparked controversy over the appropriateness of utilizing the Yongsan Station maintenance depot site?considered prime land in downtown Seoul?as a housing supply source for approximately 8,000 households.

Since this essentially means a 'mini new town' will be established in the heart of Seoul, there are positive analyses suggesting it will help alleviate the housing shortage. However, there is also considerable opposition arguing that the residential proportion in the Yongsan International Business District, which represents Seoul, will become excessively high, thereby weakening its competitiveness.

According to industry sources on the 7th, to build 8,000 homes on the Yongsan maintenance depot site as outlined in the Ministry of Land, Infrastructure and Transport's 'Plan to Strengthen Housing Supply in the Metropolitan Area' announced the previous day, about 40% of the total site area of approximately 510,000㎡ would need to be designated as residential. This means the residential area ratio, which was 15% during the 2007 Yongsan International Business District plan, would nearly triple.

For this reason, the current housing supply plan is seen by the industry as inconsistent with the existing master plan, which aimed to concentrate offices, hotels, shopping malls, and MICE (Meetings, Incentives, Conventions, and Exhibitions) facilities in Yongsan to make it a global hub in the era of internationalization. Some voices express concern that the government and Seoul city, unable to find suitable housing supply sources, have taken an excessive measure by forcibly using the Yongsan maintenance depot site.

An industry official said, "The area around Yongsan Station maintenance depot was valued at about 8 trillion won in land price alone when the international business district project was promoted, so it is a highly valuable location. Using it simply as a housing supply source just because of urgency will cause more harm than good."

Moreover, criticism has been raised that the housing construction scale was announced before the 'master plan' from Seoul city and Korail was finalized, reversing the proper order. There is a high possibility of conflicts arising during the future implementation process. Mayor Park Won-soon had also planned to release the Yongsan master plan in 2018 but indefinitely postponed it after clashes with the government.

A Ministry of Land, Infrastructure and Transport official explained, "Specific details can be announced once the development plans being established by Seoul city and Korail are finalized."

However, many analyses are positive, noting that supplying a large number of apartments in central Seoul with good transportation and residential environments could sufficiently maintain its function as a business district.

Real Estate Info Research Team Leader Kwon Il said, "Considering that increasing supply without touching reconstruction or redevelopment projects means developing land like the maintenance depot site, I view this positively. However, including many small- to medium-sized units that actual demanders want will help stabilize housing prices."

This content was produced with the assistance of AI translation services.